Regulation, liquidity and risk management strategies

US derivatives regulation is likely to have far-reaching consequences for energy companies, but how will it affect the liquidity risk management strategies developed in the wake of collateral management events of the past decade? Pauline McCallion reports

Energy companies have had a lot of motivation to develop robust strategies to manage liquidity adequacy in recent years: from the meltdown of the merchant energy sector in the early part of the last decade, to periods of high commodity price volatility scattered between then and now. But as full implementation of the US's Dodd-Frank Wall Street Reform and Consumer Protection Act rolls closer, some believe energy companies may need to re-examine such strategies to ensure they can stand up to the